Which of the following statements is true about flexible spending accounts?

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A flexible spending account permits pretax contributions to an employee account that can be drawn on to pay for uncovered health care expenses. The federal tax code requires that funds in the health care and dependent care accounts be earmarked in advance and spent during the plan year. Remaining funds revert to the employer. The major advantage of such plans is the increase in take-home pay that results from pretax payment of health and dependent care expenses.

Which of the Following Statements Is True About Flexible Spending